In a major move to protect local industry, Pakistan has imposed definitive anti-dumping duties on polyester yarn imports from China. The National Tariff Commission (NTC) made this decision after months of investigation into complaints filed by Gatron Industries and Rupali Polyester. These companies claimed that Chinese-made polyester yarn was entering Pakistan at unfairly low prices, hurting local businesses.
The investigation focused on a type of yarn called Drawn Textured Yarn (DTY). NTC studied import data from 2023 and found that Chinese exporters were selling DTY in Pakistan below normal prices. This price dumping caused serious harm to local producers. It led to reduced profits, less production, lower wages, and underused factories. The NTC concluded that the local industry was suffering heavily and needed protection.
As a result, different Chinese companies will now face anti-dumping duties ranging from 5.35% to 20.78%. For example, the Tongkun Group faces a 15.49% duty, while Shenghong Group will pay 18.73%. Jiaxing Longyin Textile and other non-cooperating exporters will pay the highest rate of 20.78%. These duties will be effective for five years, starting from November 15, 2024.
However, not all imports will be taxed. If the yarn is used in export goods or foreign aid projects, it will be exempt. These conditions are covered under Pakistan’s Anti-Dumping Duties Act 2015. While final duty rates are higher than the earlier provisional ones, the NTC said it would not collect the difference from previous imports.
The duties will be collected like regular customs duties and the money will go into a special government account. A summary of the final decision is now available to the public on the NTC’s website. Officials hope this step will give relief to Pakistan’s polyester yarn industry and restore fair competition in the market.